#micro enterprises

The Ministry of Finance has announced an additional RM500 aid under the Prihatin Special Grant 3.0 (GKP 3.0) for SMEs and micro enterprises, starting from Monday. This payment adds to the RM1,000 previously granted in June 2021. The total allocation for GKP, including a further RM500 under GKP 4.0, is RM6.08 billion, benefiting nearly one million micro SMEs. The total allocation that has been…

Deciphering the Classification of Enterprises Enterprises play a pivotal role in the economic landscape, driving growth, innovation, and employment opportunities. Understanding how enterprises are classified based on their size and scale is fundamental for availing various benefits and support mechanisms. Here’s a breakdown of the criteria for classifying enterprises as micro, small, or…

The UNDP, Global Legal Entity Identifier Foundation and the Monetary Authority of Singapore collaborate to support MSMEs develop Univeral Trusted Credentials for faster access to financing and new market opportunities.

“The Monetary Authority of Singapore, the Global Legal Entity Identifier Foundation and UNDP are launching an initiative to generate digitally enabled sustainability credentials. This is part of a larger effort to develop universal trusted credential for business. This will help them to unlock new access to finance. And it will allow them to better track their sustainability targets”, said Achim Steiner, UNDP Administrator.

Micro-, Small and Medium-sized Enterprises (MSMEs), both formal and informal, make up over 90% of all firms around the globe.i They are the backbone of most economies, particularly in developing countries Least Developed Countries (LDCs), and Small Island Developing States (SIDS). MSMEs have been recognized as important catalytic forces for the achievement of the Sustainable Development Goals (SDGs). The development of MSMEs has the potential for wide reaching impacts on economic growth, employment, gender equality, food and nutritional security, health, education, sustainable industrialization, and innovation, including through advancing transitions to the green economy.

MSMEs, both formal and informal, contribute to more than half of GDP in most countries irrespective of income levels.iii Through their critical contribution to job creation and livelihoods, particularly for the most vulnerable and disadvantaged segments of the population, including migrants, minorities, and people with disabilities, MSMEs play a key role in reducing poverty and inequality, including through driving progress on women and youth economic empowerment. Within the MSME sector, Micro and Small enterprises (MSEs) and informal enterprises at large, make an overwhelming contribution to job creation ranging between 80 and 90 per cent in low- and middle-income countriesiv. In crisis and conflict-affected settings, they also prove to be instrumental in supporting recovery and social cohesion. Yet, MSMEs have been disproportionately impacted by the COVID-19 resulting in financial instability, business closures, and employment losses, and the situation is especially dire for MSEs particularly those led by women, youth, and other disadvantaged groups. The International Trade Centre (ITC) survey on the early impact of COVID-19 that was conducted among 4467 MSMEs across 132 countries revealed that 60% of micro and 57% of small businesses had been strongly affected compared with 43% of larger enterprises. Across countries, nearly 62% of women-led small businesses were strongly affected compared to just over half of firms led by men, while women-led businesses were 27% more likely not to survive the crisis. About 26% of youth-led firms reported that they risked shutting down permanently, compared with 18% for firms led by older people. Informality further compounds these challenges due to limited access to government support and safety nets. In Africa, which is home to 33 LDCs and where MSEs dominate, two out of three businesses had been strongly affected by COVID-19.

 If small firms owe their survival to informality, it is evident that they will see merit in continuing informal. 

 MSMEs create employment that lift people out of poverty. The latest global estimate suggests that 11% of the world's population, ...

This year to mark the Micro-, Small, and Medium-sized Enterprises Day 2022, the International Trade Centre (ITC) marks the 5th anniversary of MSME Day, and small businesses are more than ever in need of support, as they navigate the impacts of the COVID pandemic, conflicts and the climate crisis. They are the hardest hit by these multiple shocks, and at the same time play a critical role in building back stronger.